Friday, December 10, 2010
 
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State slow to fix All Kids problems

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[December 10, 2010]  SPRINGFIELD -- It's been seven months since an audit of the state's children's insurance program highlighted weaknesses in enforcing eligibility requirements, and little has been done to correct the problems.

Originally a Medicaid program that provided health insurance for children in low-income families in the state, KidCare was expanded by former Gov. Rod Blagojevich to allow any child into the program and was renamed All Kids. The non-Medicaid part of All Kids -- called expanded All Kids -- allows parents who do not qualify for Medicaid to buy lower premium health insurance for their children from the state.

Medicaid is a joint state-federal health insurance program primarily for pregnant women and children under 6 with families who earn less than 133 percent of the federal poverty level. Children 6-18 with family incomes less than 100 percent of the federal poverty level also qualify for Medicaid. The state and federal governments share the cost of Medicaid. However, the state receives no federal match for children covered under expanded All Kids.


The heart of the audit took issue with expanded All Kids.

The audit recommended that state residents enrolling in All Kids provide proof of a month's worth of income, instead of the current requirement of only one pay stub. This would, for example, prevent hourly earners from using an unusually small check as a way to get cheap or free insurance for their children.

Changing the rule isn't as easy as that, according to a presentation Thursday to lawmakers on the Legislative Audit Commission by the Department of Healthcare and Family Services and the Department of Human Services. The change would require the federal government to sign off, something neither department has arranged yet, according to the presentation.

Also of concern in the audit and a previous audit of the state's Medicaid program is a situation where a number of people are re-enrolled by simply doing nothing. Every year the state sends out forms to All Kids participants, asking them to note any changes in their eligibility and mail it back. If those in the program who make less than 200 percent of the federal poverty level don't send it back, even if their eligibility has changed, they are re-enrolled.

These "passive redeterminations" need to be addressed, according to state Sen. Dale Righter. Of the 71,665 people in expanded All Kids at the time of the audit, about 75 percent of them, the vast majority undocumented immigrants, were eligible for passive enrollment.

"It's one of the reasons you're seeing skyrocketing numbers in the Medicaid program," he said.
Thursday's presentation addressed this briefly, showing it is something the departments are aware of and working on, though it gave no definite solution.

A heavy reliance on the state's strained coffers makes changes to All Kids a necessity, Righter said.

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Democratic state Sen. Dave Koehler agrees that changes need to be made to All Kids and Medicaid, but he is wary about making people jump through too many hoops.

"Where there's legitimate fraud, we need to put safeguards in system. But what I'm not interested in doing is hassling people so we discourage (eligible) people from being involved in the program," the Peoria Democrat said.

Gov. Pat Quinn's office, which ultimately is in charge of both the Department of Healthcare and Family Services and the Department of Human Services, said in a Nov. 29 Illinois Statehouse News article that it is not interested in restraining eligibility for the non-Medicaid section of All Kids.

Both Koehler and Righter are on a special committee created by the Legislature to suggest Medicaid reforms. The committee has met twice in the past two weeks, in Springfield and Chicago, to address the issue.

Righter, who is also a member of the audit commission, said Thursday's meeting was coincidental, though "obviously it is timely in terms of the current discussion."


Tightening enrollment requirements is low-hanging fruit, Righter added, and it doesn't need extensive expert testimony at the reform committee hearings. Instead, Righter said to look for topics like managed care to come up at the Tuesday meeting of the reform committee.

Whatever recommendations the committee delivers in January, the real measure of success will be whether they can move from ideas to law.

"We'll see whether or not that's a serious pitch to get something done," Righter said.

[Illinois Statehouse News; By ANDREW THOMASON]

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